Home Defender Loan

• One of the loan applicants must serve in the Estonian Defence Forces (active servicemen), the Rescue Board (rescue service employees), the Police and Border Guard Board (police and border guard officers, volunteer police officers), the Emergency Response Center, or must be a veteran of the Estonian Defence Forces, a member of the Defence League or Women’s Voluntary Defence Organization, or a volunteer rescuer.
• The loan amount starts from €7500.
• The repayment term is up to 30 years.
• Interest rate from 1.49% + 6-month EURIBOR on outstanding loan per year.
• If desired, a grace period for principal and interest payments is available for the first two years of the loan. In case of an EIS guarantee, we offer a grace period for principal payments up to 1 year.
• Early loan repayment is free of charge.
• For a purchase of real estate, the own contribution needed is from 15% of the price of real estate being bought. We also work with EIS (former KredEx) whose guarantee can reduce the amount of the initial downpayment of a home loan. We accept the co-financing provided by the Rural Development Foundation as self-financing.
• In the absence of monetary own contribution, additional collateral (real estate, including undeveloped properties) is accepted.
• The immovable property being purchased or renovated usually remains the main collateral for the home loan and is encumbered with a mortgage in favour of the bank.
• The bank will cover the credit payment insurance cost up to €100 for the first loan year, provided that the credit payment insurance and collateral insurance contract is signed through Coop Kindlustusmaakler AS. Loan payment insurance ensures the payment of the monthly loan payments in the event of a long-term illness or loss of employment.

The bank usually applied the base interest rate of Coop Pank (KPB) to long-term loans (home loan, mortgage loan) from 1 May 2008 to 18 April 2012.

KPB is quoted and published by Coop Pank on its website every banking day, taking into account money market interest rates and the current state of the economic environment in Estonia and worldwide.

The base rate is more stable compared to individual market interest rates, since it takes into account more comprehensively how the economic environment and interest rates are shaped, follows the market situation at a calm pace and is not swayed by temporary fluctuations in the individual interest rates.

KKPB is variable interest. For the client, Coop Pank’s base rate is fixed for three months at a time, changing if KPB has changed during the three months after it was fixed last under the agreement.

Currently, the base rate is 4.25%.

Base rate history

The provisional annual percentage rate on a home loan is 4,040% on the following sample terms: credit amount €130 000, repayment over 30 years in 360 monthly annuity payments, agreement fee €130,00, interest not fixed 6 months’ EURIBOR + margin 1,600% per annum (as at 31 March 2025, the 6 months’ EURIBOR is 2,354% per annum; the negative value of EURIBOR is equated to zero when interest is calculated; EURIBOR may change every 6 months), account management fee €0, total credit amount €222 451,03 and total of repayments €222 581,03.

The rate is calculated on the assumption that the credit amount is used in full immediately and that its principal and interest will be repaid in monthly annuity payments. The rate does not include any expenses related to providing or the collateral. Before you conclude an agreement, we advise you to review the terms and conditions of the financial service and, if necessary, consult a specialist.